April 18, 2016

The Game We’re Playing Is Completely Insane

A look at rents and the multi-family housing bubble starting with the Oregonian. “When Caitlin and Charles Vestal began looking to buy a home in January, the search quickly felt like a full-time job. The couple ended up with a small, one-bedroom apartment along Southeast Division street but eventually decided to buy a home – something they’d never done before – with a backyard for their dogs. ‘We just kind of had to wise up very quickly to the fact that it’s an insane game,’ Caitlin Vestal said. ‘And that list prices basically mean nothing.’”

“The reason the Vestals started to consider buying a home is ’sort of hilarious,’ Caitlin Vestal said: it was ‘how crazy the rental market is.’ Finally, they found a home: a three-bedroom, one-bathroom bungalow in North Portland’s Portsmouth neighborhood. The Vestals beat out 28 other offers with their $386,000 bid – 29 percent higher than the list price of $299,000. ‘To us, this is the game we’re playing. It’s completely insane, but that’s just how it is. You gotta roll with it,’ Caitlin said.”

The Star Tribune in Minnesota. “The ugly ducklings of the Twin Cities rental market are turning into swans. Investors are snapping up vintage apartment buildings in first- and second-ring suburbs and renovating them into upscale housing. As one prominent developer explained his strategy to a Brooklyn Center housing task force: ‘Get the Caribou crowd in, and get the Jerry Springer crowd out.’”

The Orange County Register in California. “A Register survey last fall found that more than 9,000 new apartment units came on the market or were under construction in Orange County last year. Economist Chris Thornberg reported in the USC Casden Multifamily Forecast that 38,000 new multifamily building permits were issued in all of Southern California in 2015 – the most for any year since the recession. Unlike the Casden Forecast, Reis predicted new construction will outstrip the increase in demand slightly in both Orange and Los Angeles counties.”

“Although the bulk of the new construction is for luxury ‘Class A’ apartments, the increase in supply will have a ripple effect, helping to moderate rent hikes across the spectrum of Orange County rentals, said Nicholas Dunlap, president of the Apartment Association of Orange County. ‘(Class) A product will compete with B product, and B product will compete with the C market,’ Dunlap said. ‘I don’t think we’ll see rents decrease, but we are going to see concessions. We are going to see move-in specials.’”

The Birmingham Business Journal in Alabama. “One expert says the red hot nationwide apartment market could be starting to cool off. Ryan Severino, senior economist and director of research at New York research firm Reis, is quoted as saying that vacancy is trending upward and has been for three consecutive quarters. It is the longest stretch since the fourth quarter of 2009.”

“‘This is the beginning of an upward trend in vacancy that should persist for at least the next five years,’ Severino said. ‘New construction continues to exceed net absorption by a wider margin over time, which will cause vacancy to increase in the majority (if not all) of the coming quarters. While the apartment market should still remain tight, there is clearly not a bottomless pool of demand that absorbs all of the units that are being delivered to the market.’”

“For Birmingham, some have said that the combination of luxury apartment development driven largely by institutional investor demand and anemic job growth in Birmingham’s city center means there might be a tipping point in the future where there aren’t enough consumers that can afford the high rents.”

The Orlando Sentinel in Florida. “Even as construction cranes crank out new apartments throughout Central Florida, one group reports multi-family occupancy has declined from a high six months ago. Last fall, Metro Orlando’s apartments were virtually filled with an occupancy rate of 96.3 percent — the highest rate since March 2006. By last month, occupancies edged down to 95.1 percent, which was the lowest rate in two years, according to Charles Wayne Consulting’s semi-annual apartment census.”

“In addition, the region had its greatest amount of empty apartments in recent years with 8,466 vacancies. Daryl Spradley, senior vice president for Charles Wayne Consulting, said the market isn’t necessarily softening. ‘Everybody gets nervous when it ticks off a little bit, but they’re still at maximum occupancy’ said Spradley, adding that jobs are driving demand.”

The New York Times. “Looking to sign a new lease on a New York City apartment? Now is the time to negotiate. Manhattan rental prices have begun to slip as a wave of new luxury rentals enters the market, stoking competition and spurring a flurry of concessions by landlords who are willing to pay the broker fee or throw in a free month or two of rent to fill vacancies. More than 20 percent of rental agreements in the first quarter of 2016 handled by the brokerage firm Citi Habitats included some form of deal sweetener, marking the highest level of concessions in more than five years. Rental prices are also finally beginning to decrease.”

“‘Increasing concessions in a rental market signals that landlords are having a harder time filling vacancies, making it easier to negotiate,’ said Joe Charat, the general manager of Naked Apartments.”

KX News in North Dakota. “The flood and oil boom have had major effects on the renter’s market. Rent has dropped around 30 percent over the past two years and renters also have more options. Pre-2011, there were about 7,000 total units — now there are roughly 9,000 apartment units. However, the vacancy rate has gone from around 1 percent in 2012 to roughly 20 percent currently. If the vacancy rate is so high, why are we noticing apartment complexes still being built? Doug Pfau, IMM Property Supervisor: ‘These buildings that you see in the process of being constructed are ones that have been planned out and the buildings permit pulled in 2014-2015. It’s probably back in the pre-2011 times regarding rent prices and actually the occupancy rates are lower than they were.’”

Fort McMurray Today in Canada. “At the end of 2015, Fort McMurray’s vacancy was nearly 30 per cent, the highest in the country according to the Canadian Mortgage and Housing Corporation. Estevan, the centre of Saskatchewan’s oil boom, followed at nearly 21 per cent. Alberta’s average was 5.6 per cent. And with more rentals than people to fill them, many landlords are doing whatever it takes to woo potential renters, from spending thousands on renovations to offering financial incentives.”

“Christina Augruso has waived the damage deposits on the two vacant bedrooms in her basement and is considering offering the first month free. She’s also tried sweetening the deal by allowing pets and promising a fresh-cooked Sunday dinner.Colin Woodcock estimates he’s spent $12,000 renovating his three-bedroom duplex in Timberlea, building a fence, repainting the interior and putting in a new floor. He’s dropped the monthly rent from $3,000 to $2,200. There’s also one month of free rent to anyone that signs a one-year lease. Yet, it’s been empty for weeks.”

“‘I’ll admit the house needed a facelift, so I hope that helps,’ he said. ‘And for the first time I’m allowing small pets. The market is flooded so you have to be competitive.’”

“Five years ago, both Augruso and Woodcock say they never would have imagined Fort McMurray becoming a buyer’s market. Yet, like many people, they bought their homes during the halcyon days of the last oil boom, and rely on renters to help pay off the steep mortgages. Financially, Woodcock says he’s doing well. But Augruso’s hours at her office job have been cut and her husband works in construction, which is also sputtering. ‘We’re hurting right now,’ she said.”




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225 Comments »

Comment by Ben Jones
2016-04-18 02:53:36

This is what pensions and life insurance going away sounds like:

‘Rent has dropped around 30 percent over the past two years…the vacancy rate has gone from around 1 percent in 2012 to roughly 20 percent currently…why are we noticing apartment complexes still being built? ‘These buildings that you see in the process of being constructed are ones that have been planned out and the buildings permit pulled in 2014-2015′

Comment by Ben Jones
2016-04-18 05:57:09

Here’s another one:

‘New Casper apartments prepare to open in down economy’

‘The rooms are empty now, waiting for renters to fill them once construction is completed and the doors open for good. But just how many tenants will actually materialize is still up in the air for two companies looking to fill open apartments in the Oil City.’

‘Even in a down economy, two new apartment complexes are preparing to open later this year in Casper. One, Pheasant Ridge, will provide lower income housing. The other, Granite 550, has a slew of amenities that target a higher income bracket.’

‘Pheasant Ridge shouldn’t have trouble finding lower-income renters, Casper City Planner Craig Collins said. “There’s always going to be a need for that,” he said. “That always seems to fill up as soon as they open it.”

‘Given there’s been a slowdown in larger projects in recent months, Collins said, there was some surprise that Granite 550 continued with their plans. Unemployment in Casper has been on the rise due to cutbacks in the state’s energy industry.’

“To me, that’s a little bit of a riskier development in this market,” Collins said of Granite 550. “But they’re going forward with it and they’re not trying to cheap out or make cuts or do anything like that.”

Comment by The Selfish Hoarder
2016-04-18 07:19:26

Would be nice if they can disassemble the apartments and truck them to the SF Bay Area where the rents are high and there is a severe shortage of apartments.

Comment by Ben Jones
2016-04-18 07:27:20

You haven’t been paying attention.

https://sfbay.craigslist.org/search/sby/apa?query=1+month+free

Unit #3113!! 💪 24 Hour 2 Story Fitness Center!!💪 1 Month Free!!” $2301 / 1br - 696ft2 - (san jose south) pic

Apr 17 🐾 Pet Friendly Community!! 🐾 1 Month Free!! $199 Deposit-OAC!! $2277 / 1br - 696ft2 - (san jose south) pic

Apr 17 🏡 Is Where The ❤️ Is!! Visit Today!! 1 Month Free!! $2144 / 1br - 740ft2 - (san jose south) pic

Apr 17 Unit #3121!!Pool View!! 1st Floor!! 1 Month Free!! $2313 / 1br - 696ft2 - (san jose south) pic

Apr 17 Look & Lease Today & Receive 1 Month Free + $500!! $2301 / 1br - 696ft2 - (san jose south) pic

Apr 17 $199 Moves You In!! 1 Month Free!! No App Fees!! $2144 / 1br - 740ft2 - (san jose south) pic

Apr 16 $199 Security Deposit OAC!! $500 Off!! 1 Month Free!! No App Fees!!

https://sfbay.craigslist.org/search/sby/apa?query=2+months+free

Get your Pot-o-Gold! up to 2 Months Free!!! $3999 / 2br - 1212ft2 - (cupertino) pic map

Apr 16 Live At The Marquis! Studio Special - 2 Months Free $2420 / 530ft2 - (san jose north) pic map

Apr 17 Studio Special - 2 Months Free At The Marquis! Great Amenities $2420 / 530ft2 - (san jose north) pic map

Apr 13 Brand New Luxury Studios - 2 Months Free Rent! $2097 / 530ft2 - (san jose downtown) pic map

Apr 11 2 Months Free! Brand New Luxury Studio Apartments In Japantown $2420 / 530ft2 - (san jose downtown) pic map

Apr 13 3 Bed 2 Bath Apartment!! 1 Month Free Special!! Hurry In!! $3198 / 3br - 1358ft2 - (san jose south) pic map

Apr 17 2 Month Free On Select unit! Wont You Be Our Neighbor? $3972 / 2br - 1200ft2 - (cupertino) pic map

Apr 17 Large Spacious 2 Bedroom. Washer/Dryer included and also 4 weeks free! $3065 / 2br - 1138ft2 - (a-338) pic map

Apr 15 REDUCED THIS WEEKEND ONLY..1/2 DEPOSIT..2 MONTHS FREE PET RENT $1871 / 461ft2 - (campbell)

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Comment by rms
2016-04-18 07:36:40

Gotta love that shot of the guy’s dog next to his feet at the end of the bed. NAR handbook?

 
Comment by Jingle Male
2016-04-18 09:15:10

Interesting find on CL. I did not realize the market had turned there. For sale housing is next?

 
Comment by Haystacks Calhoun
2016-04-18 09:45:50

It’s not like you missed it Jingle_Fraud but I’ll post it again.

San Francisco, CA Housing Prices Crater 7% YoY

 
Comment by oxide
2016-04-18 10:16:58

Those look like feminine feet. I guess a woman comes with the furniture, just like in Soylent Green.

 
Comment by CalifoH20
2016-04-18 10:57:31

San Jose is not San Fran.

 
Comment by Haystacks Calhoun
2016-04-18 11:06:03

A distinction without a difference.

 
Comment by Anonymous Coward
2016-04-18 11:37:44

Try actually renting one of those apartments. Locals know that 90% of craigslist rental postings in the city are bait and switch. If the listing is real, you’ll show up to find 30 other people trying to rent the same apartment.

The SF market will fall back to earth when:

1) The current tech bubble runs its course

and/or

2) The corrupt Chinese communist officials stop laundering money by buying up everything left and right

It will happen, hopefully soon, but it is not happening yet.

 
Comment by Haystacks Calhoun
2016-04-18 11:59:01

It’s already happening. Not to mention the fact housing prices are falling in SF.

 
Comment by The Selfish Hoarder
2016-04-18 12:04:03

Well that’s encouraging. San Jose is closest to the most good software jobs in that area. My sister works in Oakland and lives across the Richmond Bridge though.

“One Month off” is an immediate 8.25% cut. That is significant.

 
Comment by Jingle Male
2016-04-18 14:13:35

Try answering one of those CL adds. In Sacramento now, 40-50% of the adds are scams by people trying to get your financial info. It seems crazy, but I have seen them list one of my own houses after it was rented. I rented it for $2,350. The scammer advertised it for $1,900.

When I inquired by email, they sent a link (I did not open, because I knew it was fake) to a “credit report. They said I had to fill it out before getting the address. Too weird, as it was my own house.

CL needs to charge $10/per add to get the fraudsters off the site.

 
Comment by Haystacks Calhoun
2016-04-18 14:38:10

Nope. I just sampled 5 by phone of those ads. All 5 were legit owners or managers and verified the free month.

 
Comment by Professor Bear
2016-04-18 21:12:46

Those listings smack of desperation and falling rents dead ahead. What next — cratering property prices when investors try to cash out before getting their asses handed to them?

 
Comment by Jingle Male
2016-04-19 06:02:13

I agree, the adds look legit. It does appear the bay area MFH market is turning into a renters market. I remember seeing this happen in 2000 with the tech bust. Very interesting.

 
Comment by Haystacks Calhoun
2016-04-19 06:10:50

lol@Jingle_Fraud.

 
 
 
Comment by taxpayers
2016-04-18 09:00:36

casper”? like Ashville NC- you can drive 1 mile and no one has teeth

Comment by Haystacks Calhoun
2016-04-18 09:02:51

Irrelevant.

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Comment by In Colorado
2016-04-18 09:31:12

Taxes are low in Wyoming. No state income tax and unlike other no state income tax places like Texas, property taxes are low.

You should move there. It sounds like your kind of place.

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Comment by taxpayers
2016-04-18 10:21:42

do they have TABOR ?
otherwise no deal

 
Comment by MightyMike
2016-04-18 10:57:38

Maybe he wouldn’t like it. He calls himself taxpayers. He must take pride in paying taxes.

 
Comment by In Colorado
2016-04-18 11:43:35

do they have TABOR ?
otherwise no deal

There is no pleasing you. I find you low tax states so you can move there, and you keep finding something wrong with them.

Enjoy paying for your civil servants early and fat pensions.

 
 
Comment by MW
2016-04-18 16:06:16

You obviously have never been to Ashville, or at least haven’t been there is a long time. It is always rated one of the best places to retire and is quite expensive with a lot of upscale houses/establishments there. Very trendy/upscale down town, at least it was the last time I was there about 5 years ago.

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Comment by Haystacks Calhoun
2016-04-18 16:15:50

Houses rot, decay and depreciate. Just like teeth… irrespective of location.

 
 
 
 
 
Comment by Ben Jones
2016-04-18 03:03:39

’some have said that the combination of luxury apartment development driven largely by institutional investor demand’

This is important to note: money chasing returns. Janet? Janet?

Comment by Ben Jones
2016-04-08

Danielle DiMartino Booth makes an interesting point in the last link:

‘The movement between regions will be catalyzed by demographics, according to the JLL study, which notes there will be more people over the age of 55 by 2050 than there were inhabitants on earth in 1950.’

“This demographic impact will have a profound effect on real estate investment strategies with the amount of private equity capital targeting direct real estate set to increase by over 500 percent, much of it driven by increasing institutional allocations looking at higher yielding opportunities.”

‘Did you notice something implicit in JLL’s argument? It would seem lower for longer will remain the mantra for the foreseeable future, which suggests frothier markets and subpar growth will continue. The most interesting tidbit comes down to who will be doing the investing, that is private equity.’

‘As it were, private equity “dry powder” directed specifically to real estate investments rang in the New Year at record levels. There is now $231 billion in dry powder available just for properties in the United States after $107 billion was raised in 2015.’

‘For being six years into a recovery in commercial real estate, investors certainly remain enthusiastic, especially public pensions. Pensions have allocated some $207 billion to private equity funds since late 2012. Increasingly, allocations have targeted real estate funds with March of this year providing a perfect example of the merriment surrounding this asset class. Here’s a wee sampling with special notations if the real estate fund is of a particular bent:

Texas Teachers: $500 million
State of Oregon’s Pension: $300 million
Pennsylvania Public School Employers: $307 million
Ohio Workers Compensation Bureau: $125 million
State of Minnesota’s Pension: $100 million (distressed); $100 million (opportunistic)
State of Maine Pension: $50 million
State of New Jersey: $200 million (commercial)
State of Kansas: $50 million
Texas Municipal: $375 million

“Pensions’ chronic underfunding has prompted them to stretch to achieve unrealistic return targets,” New Albion Partners’ Brian Reynolds explained. Reynolds has been keeping a running tally of these allocations and is quick to point out that leverage is often needed to hit the bogeys, which are 7.5 percent or more. Bear that in mind when you consider the money being shoveled into these funds.’

‘It really comes down to size, that is, of the pension system. In the early 1980s, pension liabilities amounted to about 50 percent of gross domestic product (GDP); today they are 100 percent of GDP. “Because of their growth, their investment flows have led to asset bubbles that have generated permanent losses,” Reynolds added.’

‘Pensions flocked to hedge funds but that strategy blew up after Long Term Asset Management nearly took down the financial system. This strategy was followed by wholesale herding into commodities, which we all know ended is disaster.’

‘The catch is the rate-of-return bogeys have barely budged despite Baby Boomers moving increasingly closer to retirement suggesting some risk should be taken off the table. (Rather than keeping you in suspense, it’s nearly an impossible feat to lower return targets. Less in assumed returns means states and municipalities have to pony up more money they don’t happen to have on hand. The State of Connecticut has reached the point where it is now taking a stab at taxing Yale’s endowment in a desperate attempt to top off its underfunded pensions.)’

‘No matter how you slice it, most public pensions face a dire set of circumstances, which begs the question: Just what are they to do?’

‘Reynolds’ reply: “They have turned to the last remaining asset class with high expected rates of return – commercial real estate. It’s as simple as that.”

‘Perhaps pensioners should begin praying the JLL report pans out. With commercial real estate prices declining in January for the first time since 2010, the latest data available, and investors balking at rich valuations, it just might take a miracle to keep profitable prospects alive.’

http://thehousingbubbleblog.com/?p=9602

Comment by Ben Jones
2016-04-18 06:06:58

So these Institutional Investors are really smart or they wouldn’t be entrusted with so many peoples life savings, right?

http://www.institutionalinvestor.com/gmtl/3546138/in-the-global-economy-theres-no-place-like-us-housing.html#/.VxQlsXpTRL8

Comment by Combotechie
2016-04-18 06:31:54

“So these Institutional Investors are really smart or they wouldn’t be entrusted with so many peoples life savings, right?”

Convincing. The word is not smart, it’s convincing.

These Institutional Investors are really convincing or they wouldn’t be entrusted with so many peoples life savings.

There.

Comment by Combotechie
2016-04-18 06:33:35

Connected, another word that would work is “connected”

These Institutional Investors are really connected or they wouldn’t be entrusted with so many peoples life savings.

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Comment by Anonymous Coward
2016-04-18 11:41:55

Some fiduciaries do it even though they really do know better. The pressure from everyone to have a meaningful allocation to alternatives is huge because otherwise it is impossible to pretend that the expected return is what it needs to be to keep the pension fund actuarially (on paper) solvent. It is a decision not driven by investment expectations, but instead by accounting fiction.

 
 
Comment by Professor Bear
2016-04-18 07:27:25

Could any number of pension plans eventually turn out to be too big to fail, and have bailout-worthy, especially given the Fed’s complicity in driving the fund managers into taking high-risk gambles?

Comment by Bluto
2016-04-18 20:39:28

Naah, I doubt it…many are covered by the PBGC which is itself on shaky ground. I’d guess that many retirees will end up with pennies on the dollar and will just have to live with that.
The current situation with the Central States Pension Fund might be a sign of things to come…

http://www.nytimes.com/2016/04/15/us/politics/retirees-rally-at-the-capitol-protesting-pension-cuts.html

Comment by Professor Bear
2016-04-18 21:20:53

My memory on this is shaky, but I don’t believe the PBGC covers public pension plans, which are the ones frequently reported in the news as in trouble.

Also, as your post hinted, the PBGC only insures a small fraction of the pensions in the plans it covers. So without bailouts, participants in failed plans are screwed, even with PBGC coverage in place.

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Comment by Dutch Spikes
2016-04-18 07:53:03

Here’s a link to the latest CalPERS newsletter. (I’m a member.)

https://www.calpers.ca.gov/docs/forms-publications/perspective-spring-2016.pdf

In a rebuttal to recent news stories (see http://www.latimes.com/opinion/op-ed/la-oe-0128-ring-calpers-pension-reform-20160128-story.html), they are offering this data: Of each dollar paid to retirees, 13 cents comes from EEs, 22 cents comes from ERs, and 65 cents comes from investment earnings.

I wouldn’t begin to know how to verify either perspective, but 65% payment funding from investment earnings must require a helluva rate of return…

 
 
Comment by Ben Jones
2016-04-18 03:18:24

‘Investors are snapping up vintage apartment buildings in first- and second-ring suburbs and renovating them into upscale housing. As one prominent developer explained his strategy to a Brooklyn Center housing task force: ‘Get the Caribou crowd in, and get the Jerry Springer crowd out.’

Well Mr Prominent Developer, you’ll be giving these Jerry Springer tenants free rent and cooking them Sunday dinners before long. Or more likely, the Institutional Investor who financed you will hire someone to do that after you get foreclosed on.

Comment by Dandroidz
2016-04-18 06:46:35

Up in Massachusetts they have developed old mills throughout mill towns, renovated them (adding SS appliances and pergo floors), leave the wood beams exposed and cast iron pipes, and then charge $2000/mo for a “modern/chic/industrial” apartment. Its frickn insane!!!!!! People sop it up too, “Oh wowwww, look how neat and rustic, yes I’ll take the 575 sq ft model for only $1995/mo with first,last, and deposit due at signing”

I get enough industrial exposure at my job in shipyard projects, don’t need to pay a premium to see old pipes.

Comment by oxide
2016-04-18 07:15:59

In my neck of the woods there is a small downtown mall, no parking lots. Over the past 15 years it degraded into cheapo stores. Now they are renovating the decor into industrial steampunk. Black ceilings, rust-color painted exposed beams, gray concrete flooring, brown chicken-wire-ish staircase railings, and for decor: rusty gears and wheels hanging from the ceiling. Even Jules Verne would recoil in horror. And I’m supposed to SHOP here?

Comment by Dandroidz
2016-04-18 07:28:06

All to pay for $0.50 tshirts marked up to $45 because it says Banana Republic on the tag. Such a chic experience, o la la

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Comment by oxide
2016-04-18 09:21:07

Banana Republic?? Yo, even the anchor stores are off-price. This place was lucky to get Rainbow.

 
 
Comment by Eddie89
2016-04-20 09:26:55

Sounds like the decorating is being done by that lady from the Fixer Upper show!

Old, broken, rusty pieces of crap! What the hell is that doing in my brand new living room!? And you charged me how much for that piece of junk you found at an “antique” boutique!?

Hells bells!

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Comment by rms
2016-04-18 03:20:33

From the Portland piece: “Plus, nearly a quarter of home sales in the Portland area in 2015 were all-cash offers, according to the housing research firm RealtyTrac.”

Expatriate buyers there too?

Comment by Young Deezy
2016-04-18 08:00:16

CA equity locusts and HAM no doubt.

 
 
Comment by Dandroidz
2016-04-18 03:47:51

Every article I read and snippits of rent news always mention that new apartments coming online are luxury class and luxury condos. Who the heck is swooping these ups? Certainly not my debt laden millennial brethren? A vast majority of my college friends have middle class jobs such as nursing, engineering, financial analytics, etc and the others are broke with $50k+ in college debt and a Psych degree. So who is rushing in to fill these $2,000+/mo rentals? All economic indicators point to stagnant (actually falling) wages for America and the beginnings of a recession (did we ever recover?). I suppose that’s why this and many other blogs like it exist and Zero Hedge, because the system just isn’t normal.

Comment by Haystacks Calhoun
2016-04-18 04:07:23

Do you really believe that wages are going to Triple or quadruple TubeMate grossly inflated prices?

Of course not.

Demand for all types of housing is at 20-year lows and falling. This will continue until prices fall to dramatically lower and more affordable levels.

 
Comment by The Selfish Hoarder
2016-04-18 07:22:44

The first ever apartment I rented in my mid 20s was not a luxury apartment. All others had that word “luxury” affixed. It don’t mean nuffin.

Comment by Dandroidz
2016-04-18 07:32:37

Absolutely, but they will certainly charge a luxury premium, all so you can have a room with a treadmill and some dumbbells. Oh and coin operated laundry room per building, wow~!!!! Sign me up.

Comment by snake charmer
2016-04-18 07:41:26

Heh. When I graduated school and moved to Tampa, I rented in a place like that. The “fitness room” was some antiquated Universal equipment and a dust-covered treadmill. I never saw anyone in there.

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Comment by rms
2016-04-18 07:23:48

“I suppose that’s why this and many other blogs like it exist and Zero Hedge, because the system just isn’t normal.”

+1 Current economic reality doesn’t “pencil-out.”

Comment by Professor Bear
2016-04-18 07:34:04

The situation makes one wonder if there is even more government intervention to prop up markets than meets the eye.

Either that, or we are witnessing the creation of a record number of new bagholders on the next leg down.

Comment by Dandroidz
2016-04-18 07:42:05

What else can the .Gov do? Their principal financer already has $4.5 Trillion on their balance sheets. Corporations are the ones buying up their own stock w/ more debt and jacking up the $$/share. Which I don’t even understand how you buy back your own issuances of debt, maybe I should have studied economics instead of logical science/physics/mathematics.

JP Morgan was issued a letter by the Fed stating their displeasure with JP Morgans “wind down” plan should something fail, and that it would be catastrophic not for the bank itself, but for the US financial system…

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Comment by Dutch Spikes
2016-04-18 07:41:53

I don’t know if economic reality ever “pencils out.” It’s more like we are always either recovering from the last financial catastrophe or sowing the seeds of the next one. The best we can do is be knowledgable about the economy. Though at this point, it’s hard to see where things stand: Yes, we have an asset bubble, thanks to the easy money, but I see as much chance of this being the new normal price level (with resultant inflation) as I do of a slow deflation due to a mild to moderate recession later this year. It’s always what we DON’T know that ultimately gets us. What is it we’re missing about the current economic scenario?

Comment by rms
2016-04-18 07:52:24

The intelligentsia don’t fare well during revolutions.

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Comment by Haystacks Calhoun
2016-04-18 08:00:00

“What is it we’re missing about the current economic scenario?”

Cratering demand.

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Comment by snake charmer
2016-04-18 12:18:02

I don’t believe we’re missing anything in the economic sphere. This can’t continue and it won’t. But people are reluctant to countenance the possible political and social consequences of a catastrophic economic blow-up, whether the event takes the form of a sudden rupture or occurs in slow-motion. It’s not going to be as bland as the election of a reform political candidate or the passage of a few pieces of legislation and then we all can go back to watching football and reality television and texting each other. In its own way, it will be as dramatic as the changes the followed the Civil War, or the Great Depression. We’ll be a very different country, or countries, when it’s over.

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Comment by Puggs
2016-04-18 12:38:49

Kick financial crisis’ to the curb!! Get out of debt and reap the rewards of positive cash flow.

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Comment by MightyMike
2016-04-18 10:23:33

All economic indicators point to stagnant (actually falling) wages for America and the beginnings of a recession (did we ever recover?). I suppose that’s why this and many other blogs like it exist and Zero Hedge, because the system just isn’t normal.

There’s little evidence of a recession in the American economy. Zero hedge exists because a lot of people like reading gloom and doom stories. Many zero hedge fans appear to be doing well themselves. The attraction is odd.

Comment by Haystacks Calhoun
2016-04-18 10:32:43

Are you sure?

Labor Force Participation Rate Falls To 38 Year Low; Joblessness At Record High

http://data.bls.gov/timeseries/LNS11300000

 
Comment by Puggs
2016-04-18 17:50:03

There’s little pain to read bad news when you’re euphoric.

 
 
Comment by Badtux
2016-04-20 00:07:46

Here in the SF Bay Area, they estimate that we have a deficit of 1,000,000 housing units for everyone who wants to live here, thanks to years of low-density zoning and extremely high land prices that make it impractical to buy up acres of this low density housing and put up high density housing on it (not to mention a transit system that would not be capable of handling that number of people concentrated into small areas, not to mention the NIMBY’s who collectively hyperventilate every time a high-density housing project is mentioned). As a result, rents are rising through the roof. How do the millennial brethren and their heavily indebted (to their consulting company who bring them over as indentured serfs) Indian brethren handle it? Well, you can fit three twin sized beds in a bedroom, and two in a living room, so a two bedroom apartment, eight people sharing it, and they can *barely* meet the rent. Hey, it’s more Bangkok than America, but maybe they’ll strike it rich in the dot-com lottery and be able to retire elsewhere, right?

Comment by Haystacks Calhoun
2016-04-20 05:52:18

If that were the case, housing prices and rental rates wouldn’t be falling like they are in San Francisco.

Comment by Badtux
2016-04-21 21:10:19

Define “falling”. Median SF sales price is $1,150,000. Median SF rent is $4,500. That may be falling compared to its absolute peak, but that’s only because of competition from the surrounding Bay Area, whose rents and sales prices are soaring upwards towards that of San Francisco. Meanwhile, wages for most employees is *not* equally rising, which is causing even relatively well paid entry level technology workers to have to double up or triple up. None of the twenty-somethings in my office have their own apartment. They all are living with multiple other people.

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Comment by Combotechie
2016-04-18 04:38:05

“The Vestals beat out 28 other offers with their $386,000 bid – 29 percent higher than the list price of $299,000.”

Which they did not have to pay but only had to commit themselves to paying. Same with those 28 others who also didn’t have to pay but only had to commit themselves to paying.

These 28 others got edged out because the Vestals were a bit crazier that the rest of 28 the wannabe buyers, crazy enough to jump the asking price from $299,000 to a price of $386,000 - something they were willing to do because the crazy market make them a bit crazy, a bit crazier than everyone else.

As crazy as they are they could not actually buy the house if they actually had to pay for it but they do not actually pay for it, they only have to commit to paying for it. This make a crazy price, a stupid price, of $386,000 doable. If the stupid price of $386,000 was not doable then it wouldn’t be priced at $386,000.

And the comps, the values of the comps also went a bit crazy. If the actions of the Vestals jumped the price up of the house they went crazy over by $87,000 then the values of the comps reflected this craziness and hence the values OF EACH ONE OF THE COMPS jumped up by a similar amount.

If the number of comps whose values were affected is a hundred then eight-million, seven-hundred dollars of equity value - of wealth - magically sprung into being. Presto! Sprung into being due to the actions of the Vestals, who agreed that “it’s an insane game” but decided to play it anyway.

It’s insane and it’s crazy but it is doable, so there it is.

Comment by Dandroidz
2016-04-18 06:01:30

Sheez, a bidding battle for a “Bungalow” a fancy term for a tiny bachelor pad. $400,000?!? In North Portland which is the ghetto. I spent 75 days out there on a project, North Portland is not worth $400,000 for a crap shack.

Comment by Combotechie
2016-04-18 06:07:25

“North Portland is not worth $400,000 for a crap shack.”

You are just not insane enough to think so. If you are to become a buyer then you will need to arm yourself by acquiring a touch of insanity in order to compete.

Comment by Combotechie
2016-04-18 06:13:06

The Vestals: “We just kind of had to wise up very quickly to the fact that it’s an insane game, and that list prices basically mean nothing.’”

They “wised up” by entering a game that they knew, going in, was insane. Now just how crazy is that?

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Comment by Dandroidz
2016-04-18 06:31:55

I should have bought a little 2 bedroom water home on the Columbia River back in 2012, in between Vancouver and Portland outskirts, for $50,000. Some idiot would now buy it off my hands for $200k for a watery crap shack.

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Comment by Haystacks Calhoun
2016-04-18 07:43:34

Like Donk Craterton posted below, it was $225k in 2011. Triple it’s actual worth.

 
 
 
Comment by oxide
2016-04-18 06:38:33

From the article:

“Caitlin had been accepted to a graduate program in creative writing through Oregon State University, and Charles landed a tech job at the Portland design and engineering firm Uncorked Studios.”

And here is the house in the ghetto:

The Zillow pricing history:

Jan 2003: Sold $133K
Jun 2006: Sold $207K
Jan 2011: Sold $225K
Feb 2016: Listed $299K
Mar 2016: Zestimated $318K
Mar 2016: Sold $386K

The Realtor dot com link still has pictures up. The house has been “updated” with the usual cosmetic interior/exterior spruce-up and a valiant but failed attempt to finish the basement. No new bath.

The Google-maps link shows the front of the house before it was updated. Evidently the attempts to update the neighbors were unsuccessful.

http://www.realtor.com/realestateandhomes-detail/8120-N-Haven-Ave_Portland_OR_97203_M22720-92732

https://www.google.com/maps/place/8120+N+Haven+Ave,+Portland,+OR+97203/@45.5832527,-122.7203217,17z/data=!3m1!4b1!4m2!3m1!1s0×5495a7e95bf1f009:0xe13ba6a80a72e2d9

Comment by phony scandals
2016-04-18 07:07:14

Although I have never been to Portland when I looked at the picture of that house only one thing crossed my mind…

Drive-by shooting

Police responding to reported drive-by shooting in North Portland

By The Oregonian/OregonLive

March 04, 2015 at 3:23 PM

Updated, 3:50 p.m. with additional information about school lockdown.

The Portland Police Bureau’s Gang Enforcement Team is responding to a report of a drive-by shooting at North Willis Boulevard and Newman Avenue.

No injuries in drive-by shooting near Jefferson High School, police say

By Luke Hammill | The Oregonian/OregonLive
February 27, 2016 at 6:15 PM

An apparent drive-by shooting in North Portland on Saturday afternoon did not leave any injuries, police said.

Multiple shots were fired at the intersection of North Michigan Avenue and North Sumner Street, according to Portland Police. Someone riding in a light-colored car used a handgun to fire at another vehicle as they crossed paths at the intersection, officials said.

Both vehicles then left the area, witnesses told police. The intersection is near Jefferson High School and Portland Community College’s Cascade campus.

2 shot at NE Portland McDonald’s drive-thru, 4 detained
The victims’ injuries are said to be non-life-threatening

Andrew Dymburt and KOIN 6 News Staff
Published: April 4, 2016

PORTLAND, Ore. (KOIN) – Two men have been booked into jail following a shooting that happened in the Hazelwood neighborhood.

Anthony James Gray Jr., 19, was booked into the Multnomah County Detention Center shortly before 2 a.m. on Tuesday and charged with seven counts of unlawful use of a weapon and one count each of unlawful possession of a firearm, possession of a loaded firearm, and discharging a firearm within city limits.

Officers say Keita Momadee and Shailene Graham were shot while in a fast-food drive in near the intersection of Northeast 103rd and Northeast Halsey Street. Both are expected to survive, but police haven’t released specific details of their injuries.

According to court documents, Gray admitted that he was at the fast-food restaurant and that he got out of a vehicle and returned fire with a 9mm handgun after he was being shot at. Gray told police that he didn’t think he hit anyone with his shots.

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Comment by oxide
2016-04-18 07:29:27

And they paid double-bubble price for this!

 
Comment by Dandroidz
2016-04-18 07:35:32

People have this perception that Portland is this white hipster enclave of peace and harmony. They don’t realize even on the western part of downtown, you can quickly get into sketchy parts. The whole northern sector of town has bad crime. Pier park by my friends house used to be a gang haven up until 10 yrs ago. Now its a disc golf course.

 
 
Comment by rms
2016-04-18 07:32:15

“Evidently the attempts to update the neighbors were unsuccessful.”

Old tires holding the tarp(s) on the roof… does it rain there? Hehe.

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Comment by oxide
2016-04-18 07:55:42

Based on the images from the google map walking-man, it’s going to rain any minute.

 
 
Comment by snake charmer
2016-04-18 07:51:58

I saw that. The wife is a grad student and the husband works for a small hipster product design company. Unless she becomes the next J.K. Rowling, I don’t see this ending well.

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Comment by Haystacks Calhoun
2016-04-18 07:54:43

Paying 300% premiums for depreciating assets in an environment of collapsing demand doesn’t end well for any of them.

Remember…. Current asking prices for resale housing are 300% higher than long term trend and double construction costs.

 
Comment by BearCat
2016-04-18 10:47:55

Hmmm, grad student means she’ll never be a best selling author. Real writers don’t take classes, they write, read and write some more.

And please don’t call Uncorked Studios an engineering firm…it’s yet another design and app company.

 
 
Comment by taxpayers
2016-04-18 09:05:47

86% over the 2006 peak ? WTF
in N VA we are 8-10% below peak
and that’s while spending all your tax $$$

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Comment by Combotechie
2016-04-18 06:01:53

If the price the Vestals committed themselves to paying was actually paid by them then they would then take the title to the house. But if they have a pay-by-the-month plan that lasts for, say, thirty years then they will not take the title to the house for thirty years.

They will not take the title to the house - they will not actually finish buying the house - for thirty years but at the signing of the commitment papers the price they committed to paying is the price that is logged into the Official Records as the price that was paid (and it was probably paid, but not paid by them) and this Official Price is the price that sets the values of the comps, and the values of the comps is what creates equity wealth for all the total strangers who just happen to live close to the neighborhood Vestals have decided to live in.

The burden the Vestals needed to carry in order to jump the asking price from $299,000 to $386,000 was not $87,000, no it was but a fraction of $87,000; If this fraction was due to a three-percent down payment - the commitment price - then the burden the Vestals needed to carry for this price increase was only $2,610.

So for a commitment price (a down payment) of $2,610 the Vestals were able to jump the asking price up by $87,000, and this $87,000 price increase went into jumping up the values of the comps by a similar amount, and if there are a hundred or so comps then this $2,610 of an extra down payment translated into millions of dollars of added equity wealth for the total strangers who just happen to live near where the Vestals live, the crazy Vestals, the Vestals who were the craziest of the 29 people who showed up at the house and decided that they were going to be the top bidder.

Comment by Combotechie
2016-04-18 06:57:53

If the rent/buy ratio is to hold then an increase in the price of houses will need to be reflected as an increase in rents. So the actions (the crazy actions) of the Vestals will in turn create an upward change in the cost of rents - the same rents that the Vestals thought was crazy, the same rents that drove them to be a top bidder in a bidding war.

And this will do what? One thing it might do is to inspire another set of Vestals (crazy Vestals, but going by a different name) to do something similar, which is to go crazy and enter a bidding war so as to commit to buying a place with money they do not have but nevertheless this price they will commit to paying will be the one that goes into the Official Record as the one that has been paid AND is the one that will drive future rent increases.

 
Comment by Badtux
2016-04-20 00:12:47

Don’t forget that if the current comps don’t support the price they paid, they can’t get a mortgage for that price and must pay the difference in cash. If the current comps would only support $299,000, that means they did have to come up with $87,000 in cash. This was one of the regulations put in place after the previous housing crash that was intended to prevent people like the Vestals from getting in over their head buying a house that couldn’t be resold for enough to pay off the mortgage if they defaulted. But as usual, the banks are playing with the comps even though the law is supposed to keep them from doing that.

 
 
Comment by Haystacks Calhoun
2016-04-18 06:18:12

Remember today’s sale at a grossly inflated price is tomorrow’s default. Look no further than Detroit.

Comment by Dandroidz
2016-04-18 06:37:09

I bet in a decade or so there will be a govt program, much like the westward expansion/homestead acts, to encourage people to repopulate busted up towns across the US.

“Receive $25,000 subsidy to move into XYZ town in Ohio, 0 down mortgage, no PMI, max loan value of $200,000″

Comment by snake charmer
2016-04-18 07:48:37

One element of Kunstler’s hypothesis is that the future collapse of the cheap energy economy will cause mega-cities to contract and the suburbs to be abandoned, and will lead to the re-population of towns near navigable rivers and surrounded by productive agricultural land. It’s an appealing vision, in some ways. We’ll have to see what happens.

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Comment by Haystacks Calhoun
2016-04-18 07:52:57

With a globe awash in crude oil, falling prices and cratering global demand, that notion is a long way off.

 
Comment by MightyMike
2016-04-18 10:30:52

Even if you live to be 100, you probably won’t ever see that.

 
Comment by snake charmer
2016-04-18 12:42:41

Who can say? For some reason, possibly the pervasiveness of advertising and our own self-absorption, Americans think civilization only goes forward. People in other parts of the world know that it can go backwards too.

The whole oil situation is much more dependent upon geopolitics than almost anyone cares to admit. That’s one reason why we have military bases in seventy countries. I was amused by something in my paper this weekend — a survey of Middle Eastern youth, asking them about the biggest problems faced by their nations. Reverting back to a thinly populated desert once the oil depletes either wasn’t a question, or didn’t make the list.

 
 
Comment by oxide
2016-04-18 10:14:20

The USDA already has a rural mortgage program which does something similar:

http://www.rd.usda.gov/programs-services/single-family-housing-guaranteed-loan-program

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Comment by Apartment 401
2016-04-18 06:29:32

You gotta roll with it

Add that to buy now or be priced out forever, they’re not making any more land, etc.

Caitlin researched it.

Comment by rms
2016-04-18 08:03:10

Caitlin does the bidding while Charles (shell-shocked) plays the role of pu$$y whipped hubby.

 
Comment by Puggs
2016-04-18 12:41:22

“You gotta roll with it”

In 2018 it changes to… “They put a gun to my head”.

 
 
Comment by aNYCdj
2016-04-18 06:54:03

something they’d never done before – with a backyard for their dogs.

so they vastly overpaid to provide comfort for that street mutt????

Comment by oxide
2016-04-18 07:35:14

Based on the pix, the dogs will fit right into a community canine chorus.

 
 
Comment by Colorado Renter
2016-04-18 10:41:46

That’s nothing… In North Denver (also a former ghetto), these bungalow homes are going for WAY more:

http://www.trulia.com/homes/Colorado/Denver/sold/958279-3068-W-38th-Ave-Denver-CO-80211

Comment by Haystacks Calhoun
2016-04-18 10:58:09

But not after slashing the price $100k.

http://www.zillow.com/homedetails/3068-W-38th-Ave-Denver-CO-80211/13310178_zpid/

Can you imagine the losses on that shack?

Comment by Colorado Renter
2016-04-18 15:59:15

What are you talking about?

It sold for $286k, they did a quick remodel (I watched them from my backyard), and tried to sell it for $575k. Eventually they sold it for $475k, but still that’s almost a $200k flip in less than a year!

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Comment by Haystacks Calhoun
2016-04-18 16:01:32

They reduced the price $100k. It is what it is bud. Don’t take it personal.

 
Comment by Colorado Renter
2016-04-18 16:38:52

I’m not taking it personal, the point is they’re still flipping these to idiots willing to pay exorbitant fees. I had nothing to do with them cutting the cost down.

 
Comment by Haystacks Calhoun
2016-04-18 16:41:08

Nor do you know how much money they dumped into it.

 
 
 
Comment by rj chicago
2016-04-18 11:47:53

Is this the old Elitch Gardens hood?

Comment by Colorado Renter
2016-04-18 15:55:13

Yes it is. Just east of there.

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Comment by Bluto
2016-04-18 11:19:02

There is no mention of a mortgage in the Portland article so it might have been a cash deal if the buyers are Trustafarians, maybe parents helped etc. She is a student and he just changed jobs and banks generally want to see 2 years minimum at current job. Also since their bid was waaay over asking price if the appraisal did not come in at that figure a mortgage loan would likely be denied. Another one of those RE stories missing important info, like many of the heart rending foreclosure stories

Comment by Combotechie
2016-04-18 12:36:10

Could be. Half the story, IMO, involves what little money it takes to commit to paying a price. If the price is paid in full then the commitment to the price IS the price.

The other half of the story that interests me is what the price - a price paid for or just committed to eventually be paid for - what the price does to the values of the comps, how the exploding
price of a few generates “wealth” for the many.

 
Comment by The Selfish Hoarder
2016-04-18 12:49:38

Hey Bluto,
thanks for saying that at 55 people can take distributions out of former employer 401ks. It’s good to have that option. Nice to have access to a lot of moolah, especially added to my current amount of assets that are outside of tax deferral. For me that adds up to an amount I did not imagine every having from my perspective 30 years ago.

I would not know what to do with it. I’m so caught up in my lifestyle. No place to park a nice car at my address, and my current car runs fine. No room for nick nacks in my current one bedroom apt. I don’t like to travel either. I’d have to pay out money to get a better address so I can show off a car.

First comes better place to live with space for parking, second comes babe magnet, third comes babe. At some point.

Comment by oxide
2016-04-18 14:02:03

Hmm, looks like your goals have changed over the past year Bill. You’ve gone from hiding behind Bitcoin and stockpiling wine to bringing up ex-girlfriends and longing for a babe.

Just think carefully. Do you want a babe who loves your car, or do you want a babe that loves YOU? A babe who loves your car will have no problem figuring out what to do with the rest of your money. A babe that loves YOU will be more judicious.

[stay away from catalog babes]

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Comment by Haystacks Calhoun
2016-04-18 14:46:31

You should start your own column aptly titled, “Dear Donk”.

 
Comment by The Selfish Hoarder
2016-04-18 16:19:55

I still hide behind bitcoin and stockpile wine. Got four new bottles today.

Yeah I been through gold diggers before. Or one has been through me. I’m wary. My rule: Never tell them my net worth, never tell them my income (I did tell that one gold digger my income but I told her 2/3 of what I really was earning).

 
Comment by oxide
2016-04-18 18:02:25

“Never tell them my net worth”

Then why do you want to show off a fancy car??? You should woo them in your existing beater — but buy them fancy dinners without flinching. It makes you look financially comfy but not super-rich.

In other words, be a Beta Bucks. But limit yourself to the single women past childbearing age so you’re not dealing with alpha kids.

 
Comment by The Selfish Hoarder
2016-04-18 19:22:55

The car would be for me. Performance baby!

And a car that is 5% of my net worth does not say it is 5% of my net worth nor 80%.

 
 
Comment by Bluto
2016-04-18 14:13:45

You are welcome, the 401K at 55 deal is not common knowledge…in fact you can retire anytime the year you turn 55 but from what I’ve read some companies screw the paperwork up if it is before your birthday, so I waited until my 55th birthday and retired a week later. Have withdrawn 401K funds without penalty ever since and at tax time the withdrawals are treated like any other income. Every year get a big Fed tax refund and owe the State of Calif. about a quarter of it despite withholding.
Do have a big garage for my toys (a small fleet of cars, motorcycles, and bicycles…some are British classics, all are paid for) and enjoy them greatly in retirement. If you do pull the plug definitely check out Meetup groups, there is a LOT to do on weekdays….hiking, biking, kayaking, etc.

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Comment by The Selfish Hoarder
2016-04-18 16:17:47

I’d for sure be biking when pulling the plug Irvine area is ideal for that.

 
Comment by The Selfish Hoarder
2016-04-18 19:43:58

Tried to search the web for articles about why childless retirees who are financially secure should rent instead of own.

Cannot find any.

I remember the effort I went through to liquidate my late aunts estate. My uncle died a horrible sudden death. Horrible because he had no family around him in the hospital. Circumstances of his wife’s illness was the issue. A lingering effect on my memory. So that what I accumulate will be easy to determine the value and liquidate.

So why should I complicate things by buying a house? Maybe set up a foundation and buy it in the foundations name, I dunno.

So I arrived at a good rent versus net worth ratio: 1%.

I don’t want to pay more than 1% of my net worth on rent ever again, and I am now under that 1%. It is a proud feeling. And I am happy enough on weekends taking my road bike right outside and taking the nearby dedicated bike path. Simple pleasures.

 
 
 
 
 
Comment by Ben Jones
2016-04-18 06:09:57

‘With a prime location near the Tinton Falls border, just off exit 100 of the Garden State Parkway, new renters continue to flock to the Jersey Shore’s newest luxury rental community, The Waverly. Recently introduced by developer BNE Real Estate Group, this spring is anticipated to be one of the hottest rental seasons to date as word about the community’s value opportunity continues to spread.’

‘Beyond its offer of maintenance-free living in luxurious, newly-constructed surroundings, The Waverly’s enticing Grand Opening promotions are proving to be especially appealing to those looking to upgrade their lifestyle at a great value. Those who rent before May 31 can still take advantage of up to two months free rent on a brand-new one- or two-bedroom apartment, based on a 14-month lease. But inventory is going fast.’

“We are thrilled that The Waverly has been so well received by the market,’ said Kristina Hedden, vice president of Marketing for BNE. “From first-time renters, to long-time homeowners-turned-renters, our residents are looking for carefree living in a well-built luxury community. And our limited-time promotions this spring will especially appeal to their wallets.”

 
Comment by Ben Jones
2016-04-18 06:14:05

‘Column: Luxury apartments are ruining college living for everyone’

‘Off-campus housing is something every student looks into at some point in their college career. Thus, UA students need affordable options readily available for them so they’re not stressed out even further. Many students end up taking on leases at places such as Hub, The District, Sol Y Luna and The Cadence, but, these places charge exorbitant premiums that make getting an apartment an excessive cost for students.’

‘These very same places tend to offer unnecessary amenities such as rooftop pools, lavishly-furnished interiors and shower heads equipped with bluetooth speakers.’

‘College life and living should be dedicated to school and maintaining an excellent GPA, not living in luxury. Granted, there are many students whose parents willingly pay for these types of living arrangements, however, it is most shocking when a student piles on even more debt to afford such a lifestyle.’

‘Since the demand for “upgraded” student living has skyrocketed, the market and real estate developers have taken full advantage. The student housing market has exploded, now encompassing $5 billion according to a blog post on Innovation Insights.’

‘According to a Bloomberg analysis, approximately 80 percent of these off-campus spaces offer swimming pools, while only 38 percent offer dedicated study rooms.’

‘With students choosing opulent off-campus housing over on-campus housing, the UA has to compete with such facilities in order to persuade students to live in its own. Thus, new and expensive on-campus housing is built such as Árbol de la Vida and Likins. Where does that money come from? Could this be part of the reason the UA is hiking tuition yet again?’

‘What ends up happening is students have to decide between luxury student housing or living somewhere that is far, unsafe, dilapidated or even hazardous to their health.’

‘We need cheaper living for UA students. We need housing where students can not only feel safe, but also don’t have to shell out all of their income. The luxury student housing market has essentially monopolized any sort of living around campus. If you want to live within walking distance from the UA, it’ll be at least a hefty $900 per month.’

‘Students already pay enough with tuition, books and everything else they need to succeed in in college. Adding in an overpriced apartment only further enhances their stress and their debt.’

Comment by Dandroidz
2016-04-18 06:29:51

The off district housing at my school was popular the first semester it opened because it was new, had a little theater, a gym, etc. Well then everyone realized it was built like garbage, the mgmt. company was awful, the security was awful, and now, 5 yrs later, the University has severed all ties with the building. There were thousands of police calls for theft, break ins, false fire alarms, assaults….I laugh at all my millennial brethren that subjected themselves to that dump for $1500/mo. My 1996 Firebird even with 22 avg mpg (V6) was much cheaper driving 30 miles round trip to school.

 
Comment by MightyMike
2016-04-18 06:34:43

Given all of that, it would make more sense to just live in a dormitory.

Comment by Dandroidz
2016-04-18 06:49:43

You would think, but if I remember correctly, the dorms would typically run $3500 (ish) a semester, so that comes to $1166/mo and they wouldn’t have a kitchen, so they would then need a $1000/semester meal plan. Its such a racket.

Comment by MightyMike
2016-04-18 08:42:50

Are those University of Arizona numbers?

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Comment by Dandroidz
2016-04-18 09:46:07

No, this was Old Dominion University in Norfolk, VA. Not a big school by any means. I just looked up the latest housing costs, and depending on the dorm it varies from $2600 (triple occp) to $3900 (newer/single room)

 
Comment by oxide
2016-04-18 09:46:29

Your sarcastic Socratic question posts are getting old.

Yes, those ARE University of Arizona numbers:

http://www.life.arizona.edu/home/rates-applications-policies/rates

And for the heck of it, here are the meal plans:

http://union.arizona.edu/mealplans/plans.php#wildcat

 
Comment by Haystacks Calhoun
2016-04-18 10:09:54

Give him a hoof Donk! :mrgreen:

 
Comment by Ethan in nova
2016-04-18 10:30:42

Its strange hearing odu mentioned on here, thats right down the street from where I lived.

 
Comment by MightyMike
2016-04-18 10:45:51

Quite a few months ago people complained that I asked too many questions. I was able change and express the exact same sentiments in the form of statements. I haven’t actually posed more than a couple of questions in the past six months.

In this case Dandroidz commented on a story about a particular university with prices from his school. It seemed reasonable to ask where his numbers came from.

Thanks for supplying a link to the University of Arizona rents. One interesting thing there is that they charge a lot less in the spring than they do in the fall. That’s weird.

 
Comment by Dandroidz
2016-04-18 11:25:15

Why are people defensive on here? It was a college story/clipping about expensive housing costs and off-district offerings, and I offered anecdotal examples based on my local university experience. And the UA numbers match up close to what my school is charging for housing, so it kind of just solidifies the notion that college dormitories are expensive for what they are (hotel rooms w/ roommates).

 
Comment by oxide
2016-04-18 12:35:57

MightyMike, to be honest, I thought you were snarking. In the past, your questioning didn’t sound like honest curiosity. Instead, it sounded like snark/gotcha/rhetoric with implication that posters were making things up. That’s why there were complaints. Could be a residual from the political days.

So when you asked “Are these U of A numbers,” I construed it as “or are you just making this up”? So I popped in a link with real numbers.

Either way, we have real numbers now. And we already knew this was happening. Ol’ AZ Slim in Tuscon warned us about it. It’s clear that ALL the apartments are high-profit Grade A and priced that way. There is no option of chasing cheaper rent, because there is no cheaper rent to chase unless you want to get shot.

This is ALL about capturing government money, and has been for years. Force students to rent Grade A housing with student loans, and bingo, you’ve just gotten the government to effectively pad your profits.

 
Comment by snake charmer
2016-04-18 14:40:57

Speaking of AZ Slim, where is she?

 
 
 
 
Comment by Apartment 401
2016-04-18 06:57:33

We had a 4 bedroom townhouse with a porch, fenced backyard, off street parking, for $525 month or $131.25 each at Football State U. This was less than 20 years ago.

Comment by Dandroidz
2016-04-18 07:07:23

Wow that’s a good deal, sounds like an awesome arrangement at a good school. I used to live near Pensacola when my father was stationed on the panhandle…

 
Comment by phony scandals
 
 
Comment by The Selfish Hoarder
2016-04-18 07:28:52

When I met my girlfriend, a student at UA, she rented a room from some guy near UA. Her room was separate off the house with its own full sized bath. She had to share the kitchen in the house though. It was a good deal. Years later after we split, I rented that room from her landlord. It was a good deal.

 
Comment by oxide
2016-04-18 08:10:56

To be fair, all of my cheapo Grade B grad school rentals from 20 years ago had swimming pools too. I never went to the pools. Invariably they were invaded and conquered by kids from the neighborhood who clearly didn’t rent at the complex. Even luxury places have to institute an ID and guest-pass system to keep out the riff-raff.

Comment by Dandroidz
2016-04-18 08:32:37

And even that doesn’t work because most of the dumb kids who lived there were fine with holding the door open for a passerby, simply assuming they lived there too. Total breach of security.

 
 
 
Comment by Ben Jones
2016-04-18 06:35:45

‘It’s official–developers are finally building more new apartments than there are renters to fill them. “The gap between demand and supply in the first quarter was a little larger than anticipated,” says Greg Willett, chief economist for market intelligence firm MPF Research, a division of RealPage.’

‘Demand for rental apartments stumbled in the first months of this year, according to MPF. The number of occupied apartments only grew 20,077 during the period. That’s less than half the 40,000 to 50,000 new occupied apartments that the industry has gotten used to seeing each first quarter over that last few years. Occupancy tends to lose a little momentum at the end of the year and then hold steady or climb a bit at the start of the next year, according to MPF.’

“Uncertainty about the nation’s near-term economic outlook appears to be constraining new household formation and demand for all forms of housing,” says Willett. “The slight backtracking seen in the first quarter is significant because it runs counter to the normal pattern of seasonality in performance statistics.”

‘Developers opened 200,142 new apartments over the last 12 months. That’s the most new apartments opened in any 12-month period since 1988, when 216,167 new units came on-line, according to Reis.’

‘Most to the new apartments are at class-A properties opening in top markets. Roughly one third of the apartments slated for delivery this year are in Dallas/Fort Worth, Houston, New York City, Seattle-Tacoma and Washington, D.C., according to brokerage firm Marcus & Millichap. Because of all this luxury construction, the vacancy rate for class-A apartments was 4.1 percent in the first quarter compared to 3.0 percent for class-B and class-C properties, according to the researchers at Marcus & Millichap.’

“All of the increase in vacancy that we’ve been seeing has come from the class-A space,” says Ryan Severino, senior economist with Reis.’

Comment by Dandroidz
2016-04-18 06:42:38

Yet prices will not crater. Much like oil, the price is/will defy fundamentals of supply/demand. Why the heck is oil still hovering around $40/bbl and gas jumped $0.30 the last month? OPEC/Russia have consistently refused to cut supply, tankers are parked outside of ports, and there is literally no where to hold the oil, yet prices going up? Speculative non sense. The same will be for all these new apartments. I wish my rent would go down, but sadly, my landlord and anyone else will consistently raise the price 5-10% YoY.

Comment by Haystacks Calhoun
2016-04-18 07:24:38

And your rent is still half the cost of buying at current grossly inflated asking prices of resale housing.

Comment by Dandroidz
2016-04-18 08:03:18

I wont argue with that. When I realized I didn’t want to be hunkered down with a 30 yr mortgage on a crappy built town home, I decided to sell. I felt dumb having to ask, “Why the heck do I pay the buyers agent’s commission?” It just seems asinine. On top of most buyers coming to the offer table asking for closing assistance on 0 down Va mortgages (Hampton Rds VA-heavy military). Anyway, I’m glad I’m not stuck with a mortgage anymore or a reason to be saddled to one locale.

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Comment by Haystacks Calhoun
2016-04-18 08:06:15

What are your losses?

 
Comment by Dandroidz
2016-04-18 08:18:49

I basically lost/paid $5k (after all fees/closing costs) to get rid of it and walk away.

 
Comment by Haystacks Calhoun
2016-04-18 08:20:17

I think they were much higher than that. Post a link.

 
Comment by oxide
2016-04-18 10:24:31

Don’t post a link.

Mr. Haystacks has been trolling this board under a dozen different names. You’ll soon recognize the same old song and dance; he’s been singing it for years.

We have discovered that he can be staved off with virtual Cheetos — for a while. :grin:

 
Comment by Haystacks Calhoun
2016-04-18 10:29:59

backpedal

 
 
 
Comment by Eddie89
2016-04-20 11:11:30

That’s the key! Tankers are parked in the ocean full of oil! They’re trying to control the level of inventory to keep prices artificially higher.

Just like banks not foreclosing on houses. Thereby artificially creating low housing inventory and increasing prices!

 
 
 
Comment by Ben Jones
2016-04-18 06:48:21

‘The reason the Vestals started to consider buying a home is ’sort of hilarious,’ Caitlin Vestal said: it was ‘how crazy the rental market is.’ Finally, they found a home: a three-bedroom, one-bathroom bungalow in North Portland’s Portsmouth neighborhood. The Vestals beat out 28 other offers with their $386,000 bid – 29 percent higher than the list price of $299,000′

Mission accomplished, Mel Watt.

Comment by scdave
2016-04-18 07:06:22

‘I don’t think we’ll see rents decrease, but we are going to see concessions. We are going to see move-in specials.’” ??

LOL…Nice spin…There is a reason they offer concessions always verses a rent decrease…They want the GSI to stay as high as possible and the vacancy rate as low as possible…So the signed leases may be misleading…That is why any investor or lender doing proper due diligence would verify advertised scheduled income with several years of tax returns…Many times, they are not consistent with each other…

Comment by Dandroidz
2016-04-18 07:15:48

Maybe these mgmt. companies/landlords will stop asking for first, last, full deposit, first born child, dog, car, etc. That would be refreshing.

Comment by rms
2016-04-18 07:47:01

Or they could offer “first-n-last” financing…

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Comment by Haystacks Calhoun
2016-04-18 07:49:02

Far worse is a massive mortgage payment with depreciation and taxes stacked on.

Why double your cost when you can buy later for 65% less?

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Comment by Ben Jones
2016-04-18 07:22:14

Example

Comment by Haystacks Calhoun
2016-04-18 07:44:47

Jonesy…… Thanks for the photo of Lola. Just what I need on a Monday morning.

Comment by phony scandals
2016-04-18 08:11:26

Nothing says success like a Lola with an oversized carrot hanging out of his mouth.

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Comment by oxide
2016-04-18 10:02:45

“his” ??

 
Comment by phony scandals
2016-04-18 17:03:19

“his” ??

That’s not a dude?

 
 
 
 
Comment by Professor Bear
2016-04-18 07:37:07

I hope the writer follows up with the Vestals in a few years when the next crash leaves them underwater and bitter about their victimhood.

Comment by Puggs
2016-04-18 12:43:00

After foreclosure they’ll just trot on over to a “Luxury Rental” in downtown Portland and claim the suburb life just didn’t work for them and wasn’t “sustainable”. LOL!!

 
 
 
Comment by Senior Housing Analyst
2016-04-18 07:22:07

Novato, CA Housing Market Craters; Prices Plunge 13% YoY

http://www.zillow.com/novato-ca/home-values/

Comment by Puggs
2016-04-18 12:34:55

After foreclosure they’ll just trot on over to a “Luxury Rental” in downtown Portland and claim the suburb life just didn’t work for them and wasn’t “sustainable”. LOL!!

 
 
Comment by The Selfish Hoarder
2016-04-18 07:32:48

YAHOO! BRING IT ON! Yeah I noticed Irvine near my office is getting more apartment complexes. The ripple effect will drive down rents of lower priced apartments. In 2014 my rent stayed the same when I renewed my lease. In January 2017 I expect it to stay the same.

‘The Orange County Register in California. “A Register survey last fall found that more than 9,000 new apartment units came on the market or were under construction in Orange County last year. Economist Chris Thornberg reported in the USC Casden Multifamily Forecast that 38,000 new multifamily building permits were issued in all of Southern California in 2015 – the most for any year since the recession. Unlike the Casden Forecast, Reis predicted new construction will outstrip the increase in demand slightly in both Orange and Los Angeles counties.”

“Although the bulk of the new construction is for luxury ‘Class A’ apartments, the increase in supply will have a ripple effect, helping to moderate rent hikes across the spectrum of Orange County rentals, said Nicholas Dunlap, president of the Apartment Association of Orange County. ‘(Class) A product will compete with B product, and B product will compete with the C market,’ Dunlap said. ‘I don’t think we’ll see rents decrease, but we are going to see concessions. We are going to see move-in specials.’”’

Comment by Haystacks Calhoun
2016-04-18 08:02:57

‘I don’t think we’ll see rents decrease,”

In other words, rental rates are cratering already.

 
 
Comment by Senior Housing Analyst
2016-04-18 07:47:17

Danbury, CT Housing Market Implodes; Prices Crater 15% YoY As Housing Prices Sink In Northeast

http://www.zillow.com/danbury-ct/home-values/

 
Comment by Professor Bear
2016-04-18 08:12:40

Is the next leg down in oil at hand?

Comment by Professor Bear
2016-04-18 09:38:15

$30 oil ‘within days’ — what analysts see for the market after Doha talks fail
Published: Apr 18, 2016 5:29 a.m. ET
Volatility awaits with only a Vienna OPEC meeting in June ahead
By Barbara Kollmeyer
Bakken drilling in North Dakota in 2013

After talks in Doha, Qatar failed to reach a deal on an oil-production freeze, analysts are reassessing oil prices, with some even predicting U.S. crude could tumble to as low as $30 a barrel.

Comment by Dandroidz
2016-04-18 11:29:35

I feel as if that storyline has been occurring for the last 2 months. Wall St keeps hoping for a supply cut to justify jacking up the oil index, but it just isn’t happening. There was no justification for oil to go from $28/bbl to $39, because with each passing week, OPEC and Russia refuse to cut, and Iran is ramping up.

Let’s hope it tumbles to $28-30, so gas can get back under $2/gal.

Comment by Haystacks Calhoun
2016-04-18 11:50:22

lol@Dan_Donk

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Comment by Professor Bear
2016-04-18 10:19:16

The crude is a craterin’ again.

Oil prices dive after producers fail to agree output cap
1 hour ago
From the section Business
Qatari Energy Minister Mohammed Saleh al-Sada said oil producers needed “more time”

Oil prices have dropped sharply after a meeting of oil producers failed to agree an output freeze.

Brent crude fell 7% at one point before recovering some ground. In afternoon trade it fell 3.4% to $41.70 a barrel.

The meeting in Qatar was attended by most members of oil producers’ group Opec, including Saudi Arabia, but not Iran.

Saudi Arabia, the world’s biggest exporter, had been prepared to freeze output if all Opec members had agreed.

But Iran is continuing to increase output following the lifting of sanctions against it.

“As we’re not going to sign anything, and as we’re not part of the decision to freeze output, we ultimately decided it was not necessary to send a representative,” the Iranian government said.

Comment by Haystacks Calhoun
2016-04-18 10:31:11

“…… and down through ground goes a craterin’ crude.”

 
 
 
Comment by phony scandals
2016-04-18 08:26:12
 
Comment by X-GSfixr
2016-04-18 08:28:59

So what is a “Luxury/ Class A” apartment anyway?

They’ve built nothing but “luxury apartments” around here for the last 40 years.

It goes along with those “compact luxury cars” the car guys are selling.

Comment by In Colorado
2016-04-18 09:39:25

It goes along with those “compact luxury cars” the car guys are selling.

Which are basically gussied up economy compact cars with leather seats.

Comment by Dandroidz
2016-04-18 09:53:50

Like the new Chevy Malibu commercial where they took the logo/badges off and ask consumers what they think it is, “Oh, is it an Audi?” HAAAAA. When I think of a Chevy Malibu all I can picture is the late 90s craptastic/generic model driving on the road. But the new one loaded will fetch $28,000-$32,000

Comment by Haystacks Calhoun
2016-04-18 10:12:18

And the price of Eurotrash is 2x that amount. Repairs are 3x and longevity half that of a domestic or japanese car.

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Comment by palmetto
2016-04-18 14:26:51

“Repairs are 3x and longevity half that of a domestic or japanese car.”

Tell me about it. My VW finally went to the junkyard. Good riddance. What a POS.

 
Comment by Haystacks Calhoun
2016-04-18 14:48:11

They really are. I bought a brand new one and couldn’t wait to get rid of it. 15 months later it was gone.

 
Comment by Puggs
2016-04-18 15:01:05

The biggest paperweight of them all are Range Rovers. Comfy to drive and loaded with features. You can buy a used one pretty cheap. But the baked in annual repair fees will kill ya!! $3,000/yr min.

 
Comment by In Colorado
2016-04-18 15:22:04

I learned in the UK that a car with 100K miles on the odometer is considered scrapyard material. When I told people over there that we expect to get 200K+ miles out of a car, they thought I was joking. I also saw more than a few late model cars overheat in traffic jams on their “M” motorways.

 
Comment by Dandroidz
2016-04-19 05:13:20

I keep trying to tell my girlfriend’s family that VW is utter trash, but they keep insisting on buying/leasing them. I miss my 2005 Honda Civic, you could tear apart that whole interior in 2 hrs, and easily work on the motor. But I have a 2015 Civic now, so hopefully here’s to 200k miles

 
 
 
 
 
Comment by X-GSfixr
2016-04-18 08:48:32

The -fixr’s “Endorsement of the Day”

New Balance “Made in USA” crew socks.

For starters, “XL” means they actually fit a “XL” foot.

Second, the bottom has some kind of special fabric that keeps it from sliding around inside your shoe.

Third, this same fabric is visually unique. Saves a lot of time when you are matching sox.

In an era of crapification, there are still some things that meet or exceed expectations.

Comment by drumminj
2016-04-18 09:13:39

Don’t you want your socks to slide in your shoe, rather than your foot slide in your socks? (thus avoiding blisters)

Comment by X-GSfixr
2016-04-18 10:59:02

They also fit nicely on my little footies, so they dont move on my feet either.

Cheapie socks sometimes end up sliding off my toes ankles.

 
 
Comment by phony scandals
2016-04-18 09:15:43

phony loves him some size 13 x wide New Balance sneakers.

But alas New Balance has pissed phony off for agreeing to “remain silent” on the TPP deal so they could compete for some government cheese.

No ‘Shoe’-In? New Balance accuses DOD of balking on sneaker buy, renews TPP fight

Published April 14, 2016 FoxNews.com

New Balance says White House reneged on sneaker promise
Never autoplay videos

Footwear giant New Balance reportedly was promised a shot at landing a huge military contract in exchange for dropping its public opposition to an Obama-touted trade deal — but now the Boston-based company is lashing out, claiming the Pentagon has reneged on the deal.

“We swallowed the poison pill that is TPP so we could have a chance to bid on these contracts,” Matt LeBretton, a New Balance VP, told the Boston Globe.

New Balance CEO Robert DeMartini, speaking on Fox News, also confirmed Thursday that the company had told the administration they’d “remain silent” on the trade deal if they could compete for the shoe contract. But lately, he said, “things just got quiet.”

“We simply can’t get through,” said DeMartini, describing how several recent meetings with a top Defense official have been abruptly canceled.

According to the original report in The Boston Globe, the company now is prepared to speak out against the Trans-Pacific Partnership — the 12-nation trade agreement that President Obama is eager to pass through Congress, but which companies like New Balance fear will spur cheap imports.

The report threw back the curtain on the apparent backchannel talks to help lower the volume of public opposition to the TPP deal. New Balance’s central charge is that, despite assurances in exchange for support on the trade pact, the Pentagon is now stalling on any proposed shoe contracts.

“The chances of the Department of Defense buying shoes that are made in the USA are slim to none with Obama is president,” LeBretton told the newspaper.

According to the report, the company wants to land a contract to provide athletic shoes to military recruits. Under a decades-old law, the government is supposed to ensure all military recruit gear is American-made, but athletic shoes long have been exempt because of a lack of U.S. options. Several American companies, including the Boston-based New Balance, have been working to produce an all-American shoe, according to the Globe.

And so in 2014, the Pentagon said they were prepared to look at domestic options for athletic shoes.

New Balance, eyeing the job, has been ramping up operations toward producing an all-American athletic shoe, even reportedly buying an expensive and large machine to produce midsoles domestically. According to the Globe, they installed the machine two years ago at their Brighton plant.

LeBretton reportedly said the administration had pushed for New Balance to accept a version of the TPP in exchange for the DOD fast-tracking the purchase of American-made athletic shoes.

But an Obama administration trade official maintained they still support New Balance’s efforts, while suggesting the reason for the hang-up is the company has not yet submitted a proposal that meets the DOD’s needs.

Comment by Haystacks Calhoun
2016-04-18 09:47:34

13 wide? Damn….They must look like boats. Can you swing from vines with your toes too?

Comment by phony scandals
2016-04-18 16:15:34

My size 13 wide dogs are proportionate to the rest of my carcass.

I also have an 80 inch wingspan.

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Comment by In Colorado
2016-04-18 09:41:29

The -fixr’s “Endorsement of the Day”

New Balance “Made in USA” crew socks.

Let me guess. Contrary to what the globalists tell us, those socks cost pretty much the same as the ones made in third world sweat shops.

Comment by X-GSfixr
2016-04-18 11:06:16

A little more. A couple of bucks per two pair.

Like my new found appreciation for Tommy Hilfiger/Calvin Klein boxer briefs, the vast improvement in fit and quality is worth the extra few bucks.

Supposedly, according to my daughters, the same can be said about the stuff at Victoria’s Secret

I wouldn’t know anything about that. They don’t make anything my size………

Comment by Dandroidz
2016-04-18 11:36:49

I saw that NB article and honestly didn’t know they were still made in the USA up here in Mass. Kudos to them. I’m in the market for a new running shoe, so I might have to check their lineup.

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Comment by BearCat
2016-04-18 15:17:20

I believe most NB shoes are made overseas, but they do keep some production in the US. If you’re shopping retail, check the box.

 
 
Comment by In Colorado
2016-04-18 11:46:45

A little more. A couple of bucks per two pair.

So not 3-4X more like the globalists claim. Imagine that.

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Comment by snake charmer
2016-04-18 14:48:14

I’ve noticed that “XL” in the U.S. is extra large, for real. I’m a size large here, but not in Latin America. A heavier-but-not-obese acquaintance of mine once recounted how, during a vacation to France, he discovered he was a 4XL in that country.

NB running shoes are not for me. Just too much support, it felt like my foot was in a straitjacket.

Comment by The Central Scrutinizer
2016-04-18 21:13:33

Well if your feet ever go mad, you know what shoes you need to contain them.

 
 
 
Comment by Senior Housing Analyst
2016-04-18 08:50:53

Lahaina, HI Housing Market Sinks; Prices Dive 5% YoY

http://www.zillow.com/lahaina-hi/home-values/

 
Comment by Puggs
2016-04-18 09:53:19

The Vestals beat out 28 other offers with their $386,000 bid – 29 percent higher than the list price of $299,000. ‘To us, this is the game we’re playing. It’s completely insane, but that’s just how it is. You gotta roll with it,’ Caitlin said.”

It’s more phun with OPM…

Comment by The Central Scrutinizer
2016-04-18 10:16:47

…and the name of the game is “Who got F**ked?”

 
Comment by In Colorado
2016-04-18 11:48:18

This reminds me of an old cartoon where two guys get into a competition to see who can marry an ugly Betty.

 
 
Comment by Puggs
2016-04-18 12:45:23

“Christina Augruso has waived the damage deposits on the two vacant bedrooms in her basement and is considering offering the first month free. She’s also tried sweetening the deal by allowing pets and promising a fresh-cooked Sunday dinner.Colin Woodcock estimates he’s spent $12,000 renovating his three-bedroom duplex in Timberlea, building a fence, repainting the interior and putting in a new floor. He’s dropped the monthly rent from $3,000 to $2,200. There’s also one month of free rent to anyone that signs a one-year lease. Yet, it’s been empty for weeks.”

The above is an awesome narrative to supportive claims to “Depreciating Asset”.

Comment by Apartment 401
2016-04-18 13:30:19

You gotta roll with it, LOLZ

 
Comment by Raymond K Hessel
2016-04-18 14:47:16

Christina might have to up her game…

 
 
Comment by Senior Housing Analyst
2016-04-18 13:56:35

Lyden, WA Housing Market Crashes; Prices Dive 15% YoY On Cratering Housing Demand

http://www.zillow.com/lynden-wa/home-values/

 
Comment by Raymond K Hessel
2016-04-18 14:15:33

45% of ‘Muricans pay no Federal Income Tax, but probably 99% of them have no problem with voting themselves benefits (i.e. voting straight “D”) that we taxpayers will have to fund.

http://www.marketwatch.com/story/45-of-americans-pay-no-federal-income-tax-2016-02-24

 
Comment by Raymond K Hessel
2016-04-18 14:19:46

America, meet your future once our Permanent Democrat Supermajority and its ever-growing dependency voter base establish their collectivist regime.

http://www.bloomberg.com/news/articles/2016-04-18/yellow-water-dirty-air-power-outages-venezuela-hits-a-new-low

 
Comment by Muggy
2016-04-18 14:26:45

Closing Wednesday… my last week as a renter.

Comment by Haystacks Calhoun
2016-04-18 15:22:22

Let the tales of woe begin.

Comment by Muggy
2016-04-18 16:06:57

The horror!

Comment by The Central Scrutinizer
2016-04-18 21:10:56

You should make up terrible stories about homeownership to gratify the echo chamber.

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Comment by CalifoH20
2016-04-18 15:54:05

How much has it appreciated already?

Comment by Muggy
2016-04-18 17:35:09

Property Appraiser has it up $20k since we signed the contract. Zillow has it down $8k, but about above property appraiser. I have no idea how Trulia does calculations, but that is the most ridiculous at $100k above contract price.

2br. on my street just rented for $2,200/mo.

Comment by Haystacks Calhoun
2016-04-18 17:58:30

And to think you could have rented it for half the cost of buying it.

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Comment by The Central Scrutinizer
2016-04-18 21:11:55

When you’re richer than Elvis, remember us little people, huddling in our rentals.

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Comment by Raymond K Hessel
2016-04-18 14:40:33

With the Keynesian fraudsters at the central banks intent on printing away all government and corporate debts and liabilities, ownership of physical gold is a must, despite the elites’ implacable hostility toward any of the peasants who buy and hold gold.

http://www.telegraph.co.uk/business/2016/04/17/gold-is-the-spectre-haunting-our-monetary-system1/

 
Comment by Raymond K Hessel
2016-04-18 14:49:12

If you’re too stupid to register for the correct party, maybe you’re too stupid to vote.

http://www.independent.co.uk/world/us-election-californians-mistakenly-registered-far-right-american-independence-party-a6990311.html

 
Comment by Senior Housing Analyst
2016-04-18 14:52:48

Alexandria, VA Housing Market Implodes; Mortgage Defaults Surge As Prices Crater 13% YoY

http://www.zillow.com/alexandria-va/home-values/

 
Comment by Raymond K Hessel
2016-04-18 14:54:24

As the Oligopoly steps up its looting of the 99%, our children will have to get used to living in pods like this.

http://www.dailymail.co.uk/news/article-3545698/Architect-designs-tiny-flats-stand-stilts-car-parks-bid-solve-UK-housing-crisis.html

 
Comment by CalifoH20
2016-04-18 15:03:38

DOW 18,000 and…. So far this year, 46 companies have defaulted on their debt, the highest level since 2009, according to S&P Ratings Services. Five companies defaulted this week, based on the latest data available from S&P Ratings Services. That includes New Jersey-based specialty chemical company Vertellus Specialties and Ohio-based iron ore producer Cliffs Natural. Of the world’s defaults this year, 37 are of companies based in the U.S.

 
Comment by Senior Housing Analyst
2016-04-18 15:51:33

“Realtor Arrested For Defrauding Escrow Customers In Santa Ana”

http://newsantaana.com/2016/04/05/realtor-arrested-for-defrauding-escrow-customers-in-santa-ana/

 
Comment by Haystacks Calhoun
2016-04-18 16:06:11

Denver, CO Housing Prices Crater 6% YoY

http://www.zillow.com/denver-co-80203/home-values/

 
Comment by Goon's Dog
2016-04-18 17:32:22

When the river was deep
I didn’t falter
When the mountain was high
I still believed
When the valley was low
It didn’t stop me, no, no
I knew you were waiting
Knew you were waiting for me

 
Comment by doom
2016-04-18 21:29:36

Orange County sales on fire in March, the prices are soaring to new heights, and where is the money coming from?

 
Comment by redmondjp
2016-04-18 22:36:57

Let’s recap for any newbies reading here - any posts from the following:

Housing Analyst
Senior Housing Analyst
The Central Scrutinizer
Haystacks Calhoun
Jake

. . . are from the same person, who needs mental help. There are no other posters on this board who apparently take great glee in having conversations with themselves.

Comment by Professor Bear
2016-04-19 01:07:26

The Central Scrutinizer does not belong on the list, unless the mental health picture is far more dire than I perceive.

Comment by Haystacks Calhoun
2016-04-19 04:48:55

As much as it enrages everyone, I have one username and this is it. Haystacks.

 
Comment by redmondjp
2016-04-19 20:27:41

Oh most certainly that name does! Go back and search and he admits to being Housing Analyst. I called him on it through the use of idiopathic writing analysis.

Comment by Haystacks Calhoun
2016-04-20 05:53:28

Ok. I admit to being redmondjp.

(Comments wont nest below this level)
 
 
 
Comment by Haystacks Calhoun
2016-04-19 02:56:16

I’m Redmondjp too.

 
 
Comment by phony scandals
2016-04-19 06:41:05

Latest Westport property transfers: $23M total - Westport News
http://www.westport-news.com/…/Latest-Westport-property-transfers-23M-total-7253634.php - 83k - Cached - Similar pages
22 hours ago

 
Comment by phony scandals
2016-04-19 06:43:57

GreenwichTime: Southwest Connecticut Area News, Fairfield …
http://www.greenwichtime.com/ - 251k -

 
Comment by phony scandals
2016-04-19 08:53:03

Mortgage Rates History - Prime Interest Rate
http://www.fedprimerate.com/mortgage_rates.htm - 333k -

 
Comment by Yaan
2016-04-29 15:46:37

Regular HBB readers may recall that appalling Seattle Dump I posted at the beginning of the week. Guess what, it already has a pending offer.

http://www.zillow.com/homedetails/2153-N-63rd-St-Seattle-WA-98103/48717828_zpid/

 
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